When an Exporting Firm Finds That Its Local Agent Is

question 74

Multiple Choice

When an exporting firm finds that its local agent is also carrying competitors' products, the firm may switch to a ________ to handle local marketing, sales, and service.

• A) wholly owned subsidiary
• B) franchising arrangement
• C) turnkey operation
• D) licensing agreement

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Definitions:

Civil Disobedience

The active, professed refusal to obey certain laws, demands, or commands of a government or occupying power, without resorting to physical violence.

Capacity

The maximum amount that something can contain or produce.

Warfare

Organized and often prolonged conflict that is carried out by states or non-state actors.

Formally Binding Agreement

A contract or agreement recognized by law, which obligates involved parties to fulfill specified conditions and may involve penalties for non-compliance.